Section 122,125,126 of the CGST Act, 2017 — Penalty - The Petitioner challenged an order dated 13.10.2022. An inspection was carried out by the respondent and certain defects were noticed. The respondent imposed a penalty equivalent to 100% of tax, Rs.25,000/- for three contraventions under Section 125 and 100% penalty under Section 122(1). The counsel for petitioner submitted that 100% penalty under Section 122(1) is not attracted and a lenient view should have been taken by resorting to Section 126. The court observed that Original Authority has levied penalty of only Rs.25,000/- for all three non-compliances put together. Therefore, it cannot be gainsaid that maximum penalty to which a general penalty under Section 125 can extend, has been exercised. Further, this by no means fits into Section 126. Therefore, all the three points on which the order of Original Authority is predicated do not call for interference.

Held that:- The Hon’ble High Court dismissed the petition.